Financial institutions: mortgage brokers and lenders; consolidation of certain licensing statutes related to residential mortgages; make conforming changes in the Michigan penal code. Amends secs. 219e & 219f of 1931 PA 328 (MCL 750.219e & 750.219f). TIE BAR WITH: HB 6177'26

HB 6199 amends Michigan's penal code to strengthen laws against mortgage fraud by clarifying the criminal penalties for individuals who prepare or submit loan applications in someone else's name without their authorization. The bill explicitly prohibits receiving or forwarding such fraudulent applications or related financial instruments when the person knows or should know they are illegal. While the penalties for non-exempt individuals remain severe, including up to four years in prison or a fine of up to $2,500, the legislation provides specific exemptions for licensed financial institutions and their employees who handle these documents in good faith, such as when submitting them to law enforcement or credit bureaus. This update aims to align the state's fraud statutes with current mortgage industry practices and regulatory frameworks.